市场见解

Christmas is a bumper time for travel, so why is the Webjet (ASX:WEB) share price still struggling in December?

Webjet shares have struggled this month.
The post Christmas is a bumper time for travel, so why is the Webjet (ASX:WEB) share price still struggling in December? appeared first on The Motley Fool Australia. –

The Webjet Limited (ASX: WEB) share price has gone down 5% in December. In the last month it has actually dropped by 8%.

This is despite the business reporting a bumpy but ongoing recovery from the worst of the COVID-19 impacts.

What’s going on with the Webjet share price?

It’s hard to know exactly why some investors are deciding to sell at lower prices than they were before.

It may or may not be a coincidence that the Omicron variant of COVID-19 has risen to prominence around the world over the last month after South Africa reported the new variant to the World Health Organisation on 24 November 2021. As mentioned, Webjet shares have declined 8% since that time.

Some countries have been re-introducing restrictions in winter in the northern hemisphere, particularly in Europe.

Some countries like Germany, Portugal and Finland have scheduled restrictions to come in around Christmas, forcing venues like bars and nightclubs to shut. Spain is making it mandatory to wear a face mask outside again.

However, that’s not the only thing that investors may be thinking about over the last month. Webjet also reported its FY22 half-year result to investors a month ago.

Webjet HY22 result

At the time, Webjet said that its business was turning around as global travel markets started to reopen.

WebBeds had been profitable since July, with costs down 31% compared to pre-COVID and on track to be 20% more cost efficient at scale. November 2021 total transaction value (TTV) was 63% of pre-COVID volumes despite many ‘key markets’ not yet being open.

The Webjet online travel agency (OTA) business returned to profitability in October 2021. It was profitable in the first quarter, but the lockdowns and border closures impacted that.

It was seeing a rapid return to high booking volumes as markets reopened in the third quarter, which was tracking ahead of the second quarter.

The board was feeling reassured enough by market conditions to reveal that the deferred FY20 interim dividend of $0.09 per share was going to be paid on 23 December 2021.

However, despite the progress, the six months to September 2021 showed a reported net loss after tax of $61.8 million and an underlying loss of $43.8 million. That compares to an underlying loss of $58.5 million in the six months to December 2020. The bottom line can have a significant impact on investor thoughts on the Webjet share price.

Management said that the opportunities are “significant” with pent up demand evident globally.

The company thought the ongoing vaccinations, boosters and anti-viral treatments would stabilise the impact of COVID within the next six to twelve months. Webjet also said it would be back at pre-COVID volumes by the second half of FY23, which was October 2022 to March 2023.

But those comments were before the huge rise of Omicron cases, so time will tell how much impact that has on those expectations.

Expert thoughts on the Webjet share price

The broker UBS thinks that Webjet is a buy, with a price target of $6.85, suggesting potential upside of more than 30% over the next year. It thinks that the ASX travel share can do well over the coming years as demand returns and operating leverage comes into play.

It thinks that Webjet can display a good recovery beyond FY23 if it is able to hold onto (or even grow) its market share.

On UBS’ numbers, the Webjet share price is valued at 17x FY23’s estimated earnings.

The post Christmas is a bumper time for travel, so why is the Webjet (ASX:WEB) share price still struggling in December? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Webjet right now?

Before you consider Webjet, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Webjet wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

What boosted ASX 200 travel shares on Tuesday?

Webjet (ASX:WEB) shares have a 9% short interest. What does this mean?

How high will ASX travel shares fly in 2022?

These are the 10 most shorted ASX shares

Analysts say these ASX shares are buys

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

随时随地,交易世界!

移动APP平台,拥有 12 个市场的 50,000 多种全球上市证券(全球市值超过 70%),直接在您的 Android 或 iOS 设备上即可操作。

与独有的交易理念和投资分析工具相结合,帮助您在我们 12 个全球市场中的几乎所有金融工具上找到可操作的见解,从而帮助您优化交易策略。

推荐给您的朋友

向您的朋友推荐Monex并赠予他们免费使用我们交易工具的机会

我们尊重您的隐私,只会向您的朋友发送一封邮件 

与您的朋友分享

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!